Interest rates are a big topic of discussion right now. Will they continue to go up?
The big news right now in the real estate world is interest rates. They have gone up a considerable amount recently, increasing from the mid 3% level to the low 4% level. With the Federal Reserve discussing a further raise of rates because of inflation and a steady job market, you need to take advantage of them before they go up again.
The higher the rates are, the higher your mortgage payments are going to be. If you’re borrowing $400,000, for example, a 1% hike in rates means you will be paying an extra $230 a month on your mortgage.
Sellers should take advantage of these rates, as well. When they are this low, it brings more buyers into the market and there are more buyers that can afford your home. If they go up, some of those same buyers may not be able to afford it.
If you have any questions for us about real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.